Since the Procurement Act 2023 came into force in February 2025, public sector buyers have been required to demonstrate clearer social and environmental value in their purchasing decisions. For suppliers, ISO 14001 certification can provide verifiable evidence of environmental responsibility – a factor that may influence success in competitive tenders.
How the Procurement Act Changes Expectations
Under the Most Advantageous Tender (MAT) framework, value is no longer measured by cost alone. Environmental impact, social value, and long-term sustainability now carry greater weight in evaluations.
For central government contracts over £5 million, buyers must comply with Procurement Policy Note (PPN) 06/21, which includes requirements such as Carbon Reduction Plans and often mandates measurable KPIs linked to sustainability outcomes.
In practice, this means suppliers must go beyond high-level environmental statements. They are expected to provide clear evidence of environmental performance, often through audited systems such as ISO 14001.
See how the wider Act impacts SMEs and environmental compliance.
Our Tender Process outlines the key stages of the process and what businesses can expect.Looking to understand how public sector procurement works?
Why ISO 14001 Matters
ISO 14001 is the internationally recognised management system standard for environmental performance. It can help organisations to:
- Identify and manage environmental aspects
- Comply with legal and other obligations
- Drive continual improvement
In the context of public procurement, ISO 14001 offers several advantages:
- Credibility: UKAS-accredited certification provides independent verification that an organisation’s environmental practices meet recognised international standards.
- Competitiveness: ISO 14001 aligns with tender evaluation frameworks that may allocate a portion of the scoring (sometimes up to 10% or more) to social and environmental value.
- Accountability: It supports structured environmental reporting – increasingly expected, and sometimes required, in government contracts that use KPI-based performance metrics.
NHS Requirements and Market Trends Confirm the Shift
From April 2024, the NHS extended its Carbon Reduction Plan requirements to all new procurements, reinforcing the message that sustainability is no longer optional in public supply chains.
This coincides with a noticeable rise in searches for ISO 14001 certification (Google Trends data, May 2025).
Taking Action
In today’s procurement landscape, policy intent alone is insufficient. To remain competitive and compliant, suppliers must be able to demonstrate practical implementation of environmental management.
ISO 14001 provides a structured approach to help organisations:
- Align with procurement expectations
- Demonstrate continual improvement in environmental performance
- Meet both voluntary and mandatory sustainability requirements
ISO 14001 TrainingDiscover how your business could benefit from ISO 14001 certification with our ISO 14001 Awareness Training Course.  |
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